Does the seller’s agent influence lender’s decisions wrt REO’s, if so, how much?
esmith my answers are super speculative –
Do you mean the listing agent (when you said sellers agent?) I assume yes. The agent in my experience doesn’t influence them much at all. The lenders reply on the BPO which is done by someone other then the listing agent and their own analysis for pricing and evaluations of offers that come in. For REO properties the listing agent does pretty much NOTHING. It is a sweet gig.
REO commissions vary. Alot of times they are a 4.5% split. The commission structure is dictated by the listing agreement between listing agent and bank. Indeed the LA may get more commission if you don’t use an agent. Whether he will hold back other offers or give yours preferential treatment is speculative. If he holds back other offers and gets busted by his broker he will be gone. Also the lender may change the terms of the commission structure at their whim.
REO purchases include serious liability releases that the listing agent will make you sign. No matter how airtight your documentation is, theirs will be better. Thus you can most likely use the docs the listing agent gives you. Get lots of due diligence done on your own.
